The cryptocurrency mining sector in Vietnam is rebounding, according to reports, as a result of the revived crypto boom, which has seen Bitcoin (BTC) leap above $51,000 for the first time since May.
A considerable increase in demand for crypto mining rigs in Vietnam has been noticed by entrepreneurs and enthusiasts involved in the cryptocurrency industry, according to a story published on Monday by the local news outlet VnExpress.
In early September, according to Quang Thuan, the owner of a chain business that sells cryptocurrency miners throughout Ho Chi Minh City, the company’s sales have more than tripled compared to the previous month.
He pointed out that the mining rig industry in Vietnam had been in decline before Bitcoin rose back above $50,000 in mid-August, causing the sector to recover.
According to local crypto mining enthusiast Ngoc Van, the increasing demand has resulted in a significant increase in the prices of cryptocurrency miners, with some machines currently selling for 5 million Vietnamese dongs ($220) more than they did in mid-August.
He went on to say that the best-selling miners, which are based on graphics processing units built by AMD or Nvidia, are currently reportedly priced between $3,500 and $4,400.
A local crypto mining community with approximately 80,000 members, led by Le Hung, has reported that the crypto mining industry in Vietnam has gotten hotter in recent months, thanks to a resurgent crypto rally as well as the ongoing COVID-19 pandemic.
“First and foremost, the prices of Bitcoin, Ether, and other cryptocurrencies have all increased at the same time, resulting in miners beginning to profit. Second, because the pandemic has lasted longer than expected, investment alternatives have become more limited, leading more people to turn to cryptocurrency mining,” he explained.
The Vietnamese government has maintained a skepticism toward the cryptocurrency industry, with the Ministry of Finance warning the public earlier this year that bitcoin is uncontrolled in the country, according to Reuters.
Following the ban on cryptocurrencies as a form of payment in Vietnam in 2018, the government has been advising the public to stay away from the digital currency.
Despite government reservations, Vietnam had the highest rate of bitcoin adoption among 26 other countries in August, despite the government’s opposition. Despite having only the 53rd largest economy in terms of gross domestic product, the country was previously placed 13th in terms of realized Bitcoin gains for 2020.